by Mario Alfonsi | Published on Dec 24, 2011 | Updated on Dec 24, 2011The Federal Wire Act, which was established in the US all the way back in 1961 has long been considered a roadblock in online poker’s path. The Department of Justice released a memo that stated exactly the opposite. The Federal Wire Act applies strictly to wagers placed on sporting events or similar contests.Virginia Seitz, assistant attorney general, issued the statement which was mainly directed at New York and Illinois folks who wished to sell tickets online to people in other states. The main part of the Act that has come under scrutiny as to whether it applies to these folks reads like this:“Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.”And the response memo offered by Virginia Seitz reads like this:“Having considered the Criminal Division’s views, as well as letters from New York and Illinois to the Criminal Divison that were attached to your opinion request, 1 we conclude that interstate transmissions of wire communications that do not relate to a “sporting event or contest”, fall outside of the reach of the Wire Act…”John Papas, who is the executive director at the Poker Players Alliance, greeted the clarifications with open arms. He said, “This is a much needed clarification of an antiquated and often confusing law. For years, legal scholars nd even the courts have debated whether the Wire Act applies to non-sporting activity. Today’s announcement validates that internet poker does not violate this law.”Perhaps Christmas is going to bring more presents than expected for American poker players as this announcement comes on the heels of Nevada voting to initiate the creation of online poker regulations for the state. This clarification will maybe be the impetus that some states need to take charge on passing online poker regulations.
